Organon's (OGN) proposed $12 billion acquisition by Sun Pharmaceutical Industries could receive as much as $1 billion in financing from State Bank of India, Bloomberg reported Tuesday, citing people familiar with the matter.

If approved by its board, the commitment would make State Bank of India a key lender alongside Citigroup(C), JPMorgan Chase (JPM) and Mitsubishi UFJ Financial (MUFG) for the deal announced in April, according to the report.

The financing would represent an early example of state-run Indian banks funding takeovers following the Reserve Bank of India's policy change, Bloomberg added.

Organon, Citigroup, JPMorgan Chase and Mitsubishi UFJ Financial didn't immediately respond to a request for comment from MT Newswires.

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